How To Plan For Your Financial Future With Life Insurance

Transcription

1 Unlocking Life s Possibilities

2 Introducing a new perspective on life

3 From home to work to retirement, the path of life is full of changing needs, dreams, happy moments, surprises and sometimes, unpredictable emergencies. A sound financial plan is essential to ensuring a smooth path. And we believe a plan centered on life insurance can help you guarantee protection, accumulate cash value and unlock possibilities at each stage of life. Life insurance offers critical death benefit protection to help provide a safety net for your family, business, and wealth. Life insurance is more than just death protection. It serves as the center of a sound financial plan. It strengthens all other financial solutions. It provides benefits throughout life, and delivers an enduring impact on future generations.

4 Getting ahead in life

5 In today s fast-paced world, it s challenging to navigate through the increasingly complex financial choices. Permanent life insurance is a tried-and-true financial solution that guarantees death protection and also builds cash value that grows on a tax-deferred basis. The policy cash value can be withdrawn and used as needed to help people achieve lifetime goals, such as: A college education A comfortable retirement The start-up of a new business And much more Yet, too many people and small businesses remain uninsured or underinsured because they are unaware of what permanent life insurance can do for them during their lifetimes. 53% 40% College costs have increased 4.2% every year for the last decade 3 30% Households uninsured 4 Households "at risk" of not maintaining standard of living in retirement 1 Americans with no emergency savings 2 1 in 4 People took money out of their 401(k) before retirement National Retirement Risk Index, Center for Retirement Research at Boston College, 2012 Bankrate s Financial Security Index, 2014 The College Board, 4 5 Trends in College Pricing, 2013 LIMRA 2014 Study Hellowallet, the Retirement Breach in Defined Contribution Plans, 2013 All guarantees are based on the claims paying ability of the issuer. Policy loans and withdrawals will reduce the policy cash value and death benefit. Additional premium payments may be required to maintain coverage.

6 A new way of Looking at life

7 Strengthen your financial plan The death benefit is a critically important of component of your financial plan, as it protects your loved ones. Look beyond the death protection for a more complete view of the value of life insurance. Permanent life insurance can help strengthen your financial plan by providing many benefits, including: Guaranteed protection Cash value accumulation Access to the cash value through loans or withdrawals Protection from creditors Tax advantages Life insurance is a dynamic, multi-purposed means of: Providing the protection of a safety net for your loved ones, business priorities, well-being and overall way of life. Unlocking life s possibilities to do more throughout your life. And, the flexibility of an asset that can grow and evolve as your life does. Making an enduring impact that transcends generations to come..

8 Shaping a new understanding

9 Financial Readiness starts with clarity It isn t easy to make sense of the non-stop financial information and opinions in today s 24/7 society. A clearer financial understanding starts with separating myths from realities in order to fully appreciate the complete value of life insurance. Myth Life insurance is death protection only all you need is term insurance. Reality Plan Ahead Life insurance provides protection and possibilities. Permanent life insurance builds cash value for emergencies, college funding, retirement income, or other living needs. Supplement with term insurance. You should buy life insurance only after you have started a family. Buy Early Consider life insurance early in your financial life. Buying early helps you lock in the best rates while you are young and healthy, and gives cash value time to grow. Buy it once and you are all set. Keep it Current As life evolves, so do your personal and your family s financial needs. Make sure your life insurance grows with you. Term insurance is the least expensive form of life insurance. Offers Lifetime Benefits While the initial cost of term is typically lower, over time term can actually be more expensive since the cost goes up with age. And, once the initial term period ends, there is no additional value. You only need life insurance during your working years Value Throughout Life The cash value in permanent life insurance can be a tax-free way to supplement retirement income, or pay for unexpected expenses such as health care costs, while the death benefit provides a tax-efficient way to leave money to heirs.

10 Connecting the financial pieces

11 Life insurance helps to create a complete financial plan, with death benefit protection and cash value potential, which can strengthen all financial solutions. Annuities: peace of mind to spend down retirement money and maintain your lifestyle with confidence, as the cash value can supplement income while the guaranteed death benefit provides a legacy for loved ones. Investments: permission slip to pursue greater returns and wealth accumulation, knowing that the cash value can be accessed as appropriate to give investments time to grow. Long-Term Care: added safety net to cover chronic illness by accessing a portion of the death benefit early, or using the cash value to meet healthcare or other needs. Other Solutions: supplemental income to ensure financial readiness across all aspects of life, from boosting 529s and college savings, to emergency funds, to 401(k)s, etc. The death benefit provides added comfort that goals can be fulfilled if there is premature death. Disability Insurance: paycheck protection to safeguard assets and standard of living when you re unable to work, using cash value to supplement disability benefits or fill the gap until the benefits begin.

12 Unlocking Possibilities at every stage of life Matt s Financial Journey Matt added permanent life insurance as a central part of his financial plan. He purchased the policy not only for the guaranteed death protection, but also for the policy cash value that can be used for a variety of lifetime possibilities. Matt took advantage of the savings and value by purchasing life insurance early. Especially after learning that the younger you are when you buy, the better the rates and cash value accumulation opportunities. Matt worked with his financial professional to create a plan that included smart budgeting to make the most of his income, along with disciplined savings and investing. He and his financial professional reviewed his plan annually and when he experienced life events such as marriage, the births of his children and career changes. With a solid financial plan in place, as Matt s income grew so did his ability to build for tomorrow. Matt weathered several market downturns over the years and still achieved important goals for himself and his family including the start of his business, and funding college educations and weddings for his children. Matt has also built a solid retirement plan, which includes his permanent life insurance policy, to help him unlock more of life s possibilities. Plan Ahead to Change the Course of Your Future

13 I Got Started on my Financial Life in my 20 s after landing my first job. I Refined my Financial Life in my 30 s as I got married and had kids. I Stayed the Course and achieved great success in my 40 s and 50 s when I opened my law practice. I m Enjoying Life with my family and staying active in my 60 s as I ve earned the right to not work full-time.

14 Getting started in life We encourage you to talk with an experienced financial professional. By virtually every measure, the need for and value of a financial professional has never been greater Today s financial climate is more complex than ever. The number of financial products available is seemingly limitless. As your needs and family evolve, your financial plan needs to keep pace. A few tips for your financial plan: Make life insurance first and center in your financial plan. Do not see it as just another product you need to buy. Review and upgrade at key events (new child or home, job change, etc.). Do not assume your family s needs stay the same as life changes. Review annually to ensure you re on track. Do not think of it as a one-time purchase to cover a few what-ifs. A financial professional can help you build a plan centered on life insurance to help unlock life s possibilities.

15 Why Penn Mutual? At Penn Mutual, we are singularly committed to helping families unlock the possibilities of life through our life insurance and annuity solutions. We have never failed to meet an obligation to a policyholder. With our financial strength and stability standing behind our guarantees, we are committed to the brighter futures and best interests of all of our policyholders.

16 Our Noble Purpose Since 1847, Penn Mutual has been driven by our noble purpose to create a world of possibilities, one individual, one family and one small business at a time. As an original pioneer of mutual life insurance in America, we believe that purchasing life insurance is the most protective, responsible and rewarding action a person can take to build a solid foundation today and create a brighter future for generations to come. You Tube Facebook.com/PennMutual LinkedIn.com/company/penn-mutual YouTube.com/user/PennMutualLife All guarantees are based on the claims paying ability of the issuer. Accessing cash values may result in surrender fees and charges, may require additional premium payments to maintain coverage, and will reduce the death benefit and policy values. Some of the life insurance benefits described in this brochure may require additional benefits and riders that can be added to the policy The Penn Mutual Life Insurance Company, Philadelphia, PA PM /15 A5CM E2